Eli Zaretskii's answer seems to indicate that this is a known problem.

Yes, it's a known problem that the Unix terminal interprets certain

sequences of characters as commands.I'm not sure Emacs can do

anything to solve this, but suggestions are welcome.

I have not been closely watching this but I'm confused.

emacs of old (I thought) would 'quote' the characters. So, if the file had a control-C, emacs would display ^C and a single forward-character while the cursor is sitting on the ^ would move two screeen spaces up to the next character. So, while emacs would send escape sequences itself to control the terminal, the data of the file would be sent properly. (I'm not sure I'm saying clearly what I mean.)